Gold could head to $3,000 an ounce, near-term.
That’s according to Bank of America, which says, “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” as quoted by Kitco.
Plus, with coronavirus cases mounting around the world, raising fears it could stall the economy again, investors are pushing back into the safe havens of gold. Even the U.S. Federal Reserve is suggesting the U.S. recovery may be stalling.
In fact, Atlanta Fed President Raphael Bostic just said the U.S. economy was leveling off, and “There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be bumpier than it might otherwise,” as quoted by MarketWatch.
With such a combination of global bank easing, geopolitical risks, the coronavirus, and a potential global recession, gold price could easily rocket to $3,000, near-term.
Even Goldman Sachs recently said gold could move to $2,000.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”
JPMorgan Chase advises investors to hedge their risk with gold, too.
With gold likely to move higher, some of the top gold stocks to keep an eye on include:
· Barrick Gold Corp. (GOLD)
· Kirkland Lake Gold (KL)
· Newmont Corporation (NEM)
· SPDR Gold Trust (GLD)
· iShares Gold Trust (IAU)
Until such tensions begin to fade, gold prices are very likely to push much higher.